D.A. Davidson said Herbalife was its best idea for 2013. The firm has a price target of $72 on the stock and long-term price target of $120.

Catalysts for upside include a potential bid or takeover of a peer. With foreign exchange less of a drag on the stock, D.A. Davidson sees growth accelerating this year with China playing a more important role in growth.

Comments come following Pershing Square's Bill Ackman saying Herbalife was basically worthless and a Ponzi scheme. Herbalife will be holding an investor and analyst meeting on January 10th.

Shares are down 2.5 percent on the session.

For an analyst ratings summary and ratings history on Herbalife click here. For more ratings news on Herbalife click here.